C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
USA - NASDAQ:CHRW - US12541W2098 - Common Stock
133.77 USD
+0.5 (+0.38%)
133.212 USD
-0.56 (-0.42%)
Taking everything into account, CHRW scores 6 out of 10 in our fundamental rating. CHRW was compared to 23 industry peers in the Air Freight & Logistics industry. CHRW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHRW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHRW was profitable.
In the past year CHRW had a positive cash flow from operations.
CHRW had positive earnings in each of the past 5 years.
In the past 5 years CHRW always reported a positive cash flow from operatings.
1.2 Ratios
CHRW has a Return On Assets of 10.04%. This is amongst the best in the industry. CHRW outperforms 91.30% of its industry peers.
CHRW has a better Return On Equity (29.94%) than 86.96% of its industry peers.
With an excellent Return On Invested Capital value of 21.76%, CHRW belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CHRW is significantly above the industry average of 12.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 29.94% | ||
| ROIC | 21.76% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
1.3 Margins
With a decent Profit Margin value of 3.14%, CHRW is doing good in the industry, outperforming 78.26% of the companies in the same industry.
CHRW's Profit Margin has declined in the last couple of years.
CHRW has a better Operating Margin (4.88%) than 78.26% of its industry peers.
In the last couple of years the Operating Margin of CHRW has declined.
The Gross Margin of CHRW (16.38%) is better than 60.87% of its industry peers.
In the last couple of years the Gross Margin of CHRW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.88% | ||
| PM (TTM) | 3.14% | ||
| GM | 16.38% |
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
CHRW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CHRW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CHRW has been reduced compared to 5 years ago.
CHRW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.10 indicates that CHRW is not in any danger for bankruptcy at the moment.
CHRW's Altman-Z score of 8.10 is amongst the best of the industry. CHRW outperforms 100.00% of its industry peers.
The Debt to FCF ratio of CHRW is 2.15, which is a good value as it means it would take CHRW, 2.15 years of fcf income to pay off all of its debts.
CHRW's Debt to FCF ratio of 2.15 is amongst the best of the industry. CHRW outperforms 82.61% of its industry peers.
CHRW has a Debt/Equity ratio of 0.53. This is a neutral value indicating CHRW is somewhat dependend on debt financing.
CHRW has a Debt to Equity ratio (0.53) which is in line with its industry peers.
Although CHRW does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 8.1 |
ROIC/WACC2.62
WACC8.32%
2.3 Liquidity
CHRW has a Current Ratio of 1.31. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
CHRW has a Current ratio of 1.31. This is comparable to the rest of the industry: CHRW outperforms 43.48% of its industry peers.
CHRW has a Quick Ratio of 1.31. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CHRW (1.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.76% over the past year.
CHRW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.49% yearly.
CHRW shows a decrease in Revenue. In the last year, the revenue decreased by -2.55%.
The Revenue has been growing slightly by 2.97% on average over the past years.
EPS 1Y (TTM)47.76%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%12.17%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-7.74%
3.2 Future
The Earnings Per Share is expected to grow by 7.76% on average over the next years.
The Revenue is expected to grow by 1.70% on average over the next years.
EPS Next Y11.55%
EPS Next 2Y12.36%
EPS Next 3Y11.57%
EPS Next 5Y7.76%
Revenue Next Year-7.95%
Revenue Next 2Y-2.03%
Revenue Next 3Y0.22%
Revenue Next 5Y1.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CHRW is valuated quite expensively with a Price/Earnings ratio of 27.02.
The rest of the industry has a similar Price/Earnings ratio as CHRW.
When comparing the Price/Earnings ratio of CHRW to the average of the S&P500 Index (27.20), we can say CHRW is valued inline with the index average.
A Price/Forward Earnings ratio of 23.55 indicates a rather expensive valuation of CHRW.
69.57% of the companies in the same industry are more expensive than CHRW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CHRW to the average of the S&P500 Index (22.71), we can say CHRW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
CHRW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CHRW is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.63 | ||
| EV/EBITDA | 18.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CHRW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)18.18
EPS Next 2Y12.36%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 1.89%.
Compared to an average industry Dividend Yield of 3.75, CHRW pays a better dividend. On top of this CHRW pays more dividend than 82.61% of the companies listed in the same industry.
CHRW's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 4.17%.
CHRW has been paying a dividend for at least 10 years, so it has a reliable track record.
CHRW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
56.12% of the earnings are spent on dividend by CHRW. This is a bit on the high side, but may be sustainable.
CHRW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP56.12%
EPS Next 2Y12.36%
EPS Next 3Y11.57%
133.77
+0.5 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners98.21%
Inst Owner Change0.97%
Ins Owners0.81%
Ins Owner Change-0.78%
Market Cap15.80B
Analysts75.15
Price Target119.01 (-11.03%)
Short Float %5.76%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.5
Dividend Growth(5Y)4.17%
DP56.12%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.1%
Min EPS beat(2)9.07%
Max EPS beat(2)9.13%
EPS beat(4)4
Avg EPS beat(4)8.6%
Min EPS beat(4)6.62%
Max EPS beat(4)9.57%
EPS beat(8)7
Avg EPS beat(8)6.07%
EPS beat(12)7
Avg EPS beat(12)-0.35%
EPS beat(16)10
Avg EPS beat(16)4.84%
Revenue beat(2)0
Avg Revenue beat(2)-4.82%
Min Revenue beat(2)-6.93%
Max Revenue beat(2)-2.72%
Revenue beat(4)1
Avg Revenue beat(4)-4.11%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)0.6%
Revenue beat(8)2
Avg Revenue beat(8)-3.15%
Revenue beat(12)2
Avg Revenue beat(12)-4.82%
Revenue beat(16)5
Avg Revenue beat(16)-1.98%
PT rev (1m)2.23%
PT rev (3m)5.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)4.82%
EPS NY rev (3m)4.38%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-7.01%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 23.55 | ||
| P/S | 0.93 | ||
| P/FCF | 24.63 | ||
| P/OCF | 22.25 | ||
| P/B | 8.85 | ||
| P/tB | 49.39 | ||
| EV/EBITDA | 18.23 |
EPS(TTM)4.95
EY3.7%
EPS(NY)5.68
Fwd EY4.25%
FCF(TTM)5.43
FCFY4.06%
OCF(TTM)6.01
OCFY4.5%
SpS144.06
BVpS15.11
TBVpS2.71
PEG (NY)2.34
PEG (5Y)18.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 29.94% | ||
| ROCE | 27.43% | ||
| ROIC | 21.76% | ||
| ROICexc | 22.94% | ||
| ROICexgc | 46.45% | ||
| OM | 4.88% | ||
| PM (TTM) | 3.14% | ||
| GM | 16.38% | ||
| FCFM | 3.77% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
ROICexc(3y)25.06%
ROICexc(5y)23.32%
ROICexgc(3y)62.88%
ROICexgc(5y)54.03%
ROCE(3y)30.15%
ROCE(5y)28.01%
ROICexcg growth 3Y0.83%
ROICexcg growth 5Y-1.15%
ROICexc growth 3Y-4.51%
ROICexc growth 5Y-1.82%
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
F-Score8
Asset Turnover3.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 69.6% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.45% | ||
| Profit Quality | 120.04% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 8.1 |
F-Score8
WACC8.32%
ROIC/WACC2.62
Cap/Depr(3y)99.97%
Cap/Depr(5y)86.13%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.41%
Profit Quality(3y)150.71%
Profit Quality(5y)108.59%
High Growth Momentum
Growth
EPS 1Y (TTM)47.76%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%12.17%
EPS Next Y11.55%
EPS Next 2Y12.36%
EPS Next 3Y11.57%
EPS Next 5Y7.76%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-7.74%
Revenue Next Year-7.95%
Revenue Next 2Y-2.03%
Revenue Next 3Y0.22%
Revenue Next 5Y1.7%
EBIT growth 1Y49.86%
EBIT growth 3Y-11.13%
EBIT growth 5Y-0.79%
EBIT Next Year20.5%
EBIT Next 3Y11.34%
EBIT Next 5Y6.83%
FCF growth 1Y-63.72%
FCF growth 3Y160.19%
FCF growth 5Y-11.11%
OCF growth 1Y-62.19%
OCF growth 3Y73.8%
OCF growth 5Y-9.8%